Description
This is a 3 statement financial model template, accompanied by a step by step method explaining and teaching how to build this type of model.

A 3 statement model is a type of financial model that connects three types of statement; it connects the income statement, the balance sheet, and the cash flow statement. The result of this is a ready-to-use, centralised model. This type of model makes up the basis for more complex financial models, such as DCF models, merger tools, Leveraged Buyout Models (LBO), among others.

With a 3 statement model, one can approach the structure in a multiple ways. CFI, however, recommends the use of a single excel worksheet due to the increased ease of navigation, reduction of risk of formula mis-linking, more organised cell grouping, and it frees up more room for the concretising of multiple businesses.

This ready-to-use, instantly downloadable contains a number of sections, these comprise of:

- Assumptions: Including income statement and balance sheet

- Income Statement: made up of the revenue, gross profit, expenses, earnings before tax, and net earnings.